German railroad, utility company teaming up to reduce CO2 emissions

German railway company Deutsche Bahn has signed a long-term agreement with utility E.ON for the annual delivery of hydroelectric power.

The deal is part of Deutsche Bahn's goal of obtaining 35% of its energy used from green sources by 2020.

Beginning in 2015, E.ON will deliver 600 million kWh per year to Deutsche Bahn from its run-of-river hydropower plants, which equates to about 6% of the railroad's yearly needs.

The contract is in effect until 2021 but includes the possibility for extension through 2028.

Deutsche Bahn is Germany's single largest consumer of electricity, needing about 10 billion kWh per year. Currently, the company says renewables account for about 22% of its energy mix, though its goal is to be entirely free of carbon dioxide-emitting energies by 2050.

E.ON operates more than 130 hydropower plants with a combined output capacity of about 2,750 MW.